The Galway City Council’s “so called ‘affordable houses’ are massively over-priced” and prices must be cut by “at least 25 per cent” to reflect the reality of the marketplace, according to Fine Gael councillor Brian Walsh.
It is understood that the number of people on the affordable housing waiting list is 450. Cllr Walsh expects this to increase due to the downturn in the economy.
However he has described the council’s affordable housing plan as “farcical” saying council ‘affordable’ homes in Knocknacarra are being offered for €278,000 (three-bed ) and €235,000 (two-bed ) while similar homes on the open market can cost between €210,000 and €225,000.
“In some parts of the city,” he said, “house-hunters can now buy homes on the open market at tens of thousands of euro less than those offered under the local authority’s scheme because of the property market collapse.”
He said the only way to “clear the backlog” of people on the waiting list is to “slash at least €50,000 off the cost of the houses on offer” and offer them below the market value price at €200,000 and under.
Cllr Walsh was also critical of the Government saying it has left the city council “short changed this year” with regard to the construction of social and affordable housing.
“There will be little or no new schemes coming on board in 2009,” he said. “With this in mind the council must immediately reduce the price of some of its affordable housing stock in order to sell.”
